Description

When real property is sold for a gain, we always try to find ways to defer recognizing income so that it won’t be necessary to send a check to Uncle Sam. There is a provision within the Internal Revenue Code that allows the taxpayer to defer recognition of immediate taxable gain in the year of sale known as a “like-kind exchange.” Knowing how and when to utilize this provision makes the Accounting and Finance Professionals very valuable to either their client or the entity they work for. We will also discuss recent proposals that could impact the future of this provision. Please Note: due to overlap with the ISL4 course, customers should not take both.

Instructor: Dave Peters, CPA, CFP, CLU, CPCU, MST, MBA

Target Audience

Accounting and Finance Professionals who either represent or work for entities that own real property

Course Objectives

Utilize the provisions of IRC Sec 1031 in order to defer recognizing gain on the sale of real property via a like-kind exchange

Subjects

Understanding the history of IRC Sec 1031

Who does and does not qualify for utilizing the like-kind provisions

Which properties do and do not qualify for like-kind exchanges

The differences between a “dealer” and a “non-dealer” regarding like-kind exchanges

How to complete a like-kind exchange

The different types of like-kind exchanges

The definition of “boot” and how it applies to like-kind exchanges

Rules concerning Revenue Ruling 72-456, and

Form 8824

Prerequisites

A basic knowledge of the provisions for recognizing gain or loss on the sale of real property